Forex Robot scams!
Have you ever thought about this? “It looks too good to be true” Sure you are if you have something in your head, right!? To be honest, several of my new facebook ‘FX friends’ spurred me to write this short article. It’s unbelievable how many people is promising easy money by trading forex, but belive me, forex is nothing like that. Forex robots or Expert Advisors (EAs) are programs that claim to automate Forex trades, making money while you’re doing nothing. And that ‘zillion percentage’ Forex robot system cost only $59 or $99. Hell yeah, that is simply not possible.
I would not belive in this trading system if the same will cost a $100,000! Why? Because, forex market is providing so much daily liquidity, that returning of $100,000 investment will be a peace of cake, if that system works. But, altough this scam is so obvious, there is millions of US dollars dropped into Forex robots every day. When I see all of this, it’s not surprising that 90% of ‘investors’ and retail traders lose money on forex. But, let’s be honest. People who ‘invest’ money like this are not investors, they are fools. There is so many reviews about this, trading tracks, performances and nothing can be proven as profitable long term. I belive that, sometimes could be find a great performance from the system like this, short term of course, but that could be related more with luck, not with expertise. It’s enough for the market sentiment to be related with program for a while, but you are all aware of the market sharp turnovers and how things changed over night in this world.
Don’t trust this shit! I hope that none of wise and serious Forex traders will be sucked into the dark side of trading with robots and promises of geting rich, while you are enjoying in some exotic island beach, spending ‘earned’ money and doing nothing. Forex is not an easy money!
Yes, algos (robots) are runing the FX market, but that algos are made from large banks and funds which can actually move the market and that’s why they can predict what will happen in future. But, cheap robot systems can’t follow that and don’t be trapped in to thinking that this actually works because it’s not.
An experienced trader knows that HIS proven live traded strategies can be automated very easily – but – very few chose to do so. Some may automate only portions of their tradebook – but never the entire tradebook. The tradebook a trader uses normally encompasses his skillset and his trader profile as a whole – The experienced traders’ brain will always trade better then a machine in these not so random markets simply because Automation; as such Consistency are only one piece in the entire puzzle. So much of the puzzle cannot be incorporated in an EA/Robot.
Either you are a trader or you are not – while a robot will not make you a trader either it may just improve your existing winning strategies.
just my two cents.
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You’re right Jean. The biggest problem is, that self called fx money managers are using some ea’s to prove how successful they are and when you check the details, you see that this ‘strategy’ is worthles. Most if the big players, banks or fx floors are using the ea’s, but strictly controled and updated each day and even hour. Thats something completely different from this scams, which is taking millions daily from the succers.
I agree. The other way of looking at it is that if for $59.00 you can buy a robot or EA that will make you money every day, year in and year out the question is why is it on the market being sold. If I were to own such a robot, I would not bother marketing it for a fraction of what I could earn if I set it to work for me. On the same note if it were to be offered for $100,00, I would be just as skeptical. The cost of mass producing a robot is next to nothing as it only a piece of digital code. The cost, such as it is, arises in the writing of the code. Consequently paying $100,00 for something which can be shared with everyone is not the best proposition.
Personally If I had to chose between a $59.00 robot and a $100,000 robot, I would prefer the $59.00 robot as it is likely to be shared with more people. The more people who are doing the same thing the greater the chance of the trade working.
Thus spending money on robots or EA is probably not the best investment. The thing about robots and EAs is not their actual cost but the extent of the damage that they might do to your account. In fact even a $100,000 might be cheap compared with the speed at which it eats into your equity.
The final point is that one only needs to look at Knight Capital to see what a robot or EA can do in just 45 minutes. It eat into their capital at the rate of $172,222 per second. I accept that it was a bug, but who is to say that your $59.00 or even $100,000 robot or EA does not have a bug.
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Great point as well. Thanks Mr. Miller.